Financial Performance - The group's annual gross profit was RMB 1,072.3 million, an increase of RMB 10.9 million or 1.0% compared to RMB 1,061.4 million for the year ended December 31, 2021[1]. - Profit attributable to equity holders of the parent company increased by 104.1% to RMB 106.4 million for the year ended December 31, 2022, with a net profit margin of 5.8% compared to 3.0% in the previous year[5]. - The group's revenue increased by approximately 4.5% to about RMB 1,825.9 million for the year ended December 31, 2022[93]. - Revenue from pharmaceutical operations grew by approximately 7.3% to RMB 1,129.9 million, accounting for 61.9% of total revenue[71]. - The operation of chain pharmacies contributed RMB 696.0 million in revenue, showing a slight increase of 0.4% year-on-year[95]. - The pharmaceutical segment generated revenue of RMB 1,129.9 million, reflecting a growth of 7.3% compared to the previous year[95]. Cost and Expenses - Administrative expenses were approximately RMB 104.7 million, an increase of about 1.8% from RMB 102.9 million in the previous year, primarily due to increased depreciation and office expenses[3]. - Financing costs for the year ended December 31, 2022, were RMB 6.6 million, down from RMB 7.1 million in the previous year, mainly due to a reduction in bank borrowings[4]. - Selling and distribution expenses were approximately RMB 809.8 million for the year ended December 31, 2022, a decrease of about 2.3% from RMB 829.2 million in 2021, with the ratio to revenue decreasing to approximately 44.4% from 47.5% in 2021[134]. - Research and development expenses increased by approximately 5.7% to RMB 46.4 million for the year ended December 31, 2022, compared to RMB 43.8 million in 2021, primarily due to increased direct R&D investments[135]. - Income tax expenses for the year ended December 31, 2022, were RMB 23.7 million, up from RMB 9.4 million in 2021, mainly due to an increase in profit before tax[136]. Assets and Liabilities - As of December 31, 2022, the net current assets of the group were approximately RMB 359.7 million, with cash and bank balances increasing to RMB 381.0 million[82]. - The group's debt ratio decreased to 3.6% as of December 31, 2022, down from 6.4% the previous year[107]. - As of December 31, 2022, the equity attributable to shareholders was approximately RMB 1,005.9 million, compared to RMB 901.2 million as of December 31, 2021[138]. - The company has no contingent liabilities as of December 31, 2022, consistent with the previous year[117]. - As of December 31, 2022, the company's distributable reserves amounted to RMB 140.3 million, which includes share premium and retained earnings, indicating the ability to meet upcoming debt obligations[198]. Corporate Governance - The company has adhered to the principles outlined in the corporate governance code and complied with all applicable code provisions as of December 31, 2022[29]. - The board of directors is responsible for leading and monitoring the company, overseeing business strategies and performance[30]. - The audit committee was established on June 8, 2015, and its scope of authority includes reviewing financial statements and monitoring the group's risk management and internal control systems[37]. - The board consists of four executive directors, two non-executive directors, and three independent non-executive directors, with independent directors accounting for over one-third of the board[45]. - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee to oversee specific areas of the company's affairs[54]. - The company received written confirmations regarding the independence of all independent non-executive directors during the reporting period[51]. - The board monitors the company's strategic development and sets appropriate risk management policies in line with the group's strategic objectives[46]. - The company has a continuous professional development program for its directors, ensuring they remain updated on relevant industry practices[32]. - The audit committee comprises three members, all of whom are independent non-executive directors, ensuring unbiased oversight of financial reporting[37]. - The company has implemented a comprehensive management structure to ensure effective governance and operational success[30]. Operational Developments - The number of self-operated chain pharmacies in Guangdong Province increased to 429 from 398 in the previous year[72]. - The group plans to expand into new retail businesses and enhance online sales following regulatory changes[68]. - The group aims to strengthen the quality assurance system for traditional Chinese medicine throughout the entire supply chain[67]. - The group will continue to design and construct modern factories to establish new growth points for the future[67]. - The company has completed the land bidding for a new factory in Zhongshan, Guangdong Province, to expand production capacity in response to rising product demand[116]. - The new factory in Guangdong is intended for the production of traditional Chinese medicine products to meet increasing market demand[116]. - The company has adjusted its operational strategy to control expenses and expand business in a challenging environment[93]. Supplier and Customer Relations - The company emphasizes strong collaboration with suppliers to effectively meet customer demands, ensuring a transparent and fair procurement process[190]. - The average business relationship with major suppliers exceeds six years, covering various regions in Northern, Central, and Southern China[191]. - Sales to the top five customers accounted for less than 30% of total sales during the reporting period, suggesting a diversified customer base[199]. - The average credit term for major wholesale customers is generally no more than three months, while new customers are typically required to make advance payments[192]. Future Outlook - The group will consider any potential investment opportunities that may benefit shareholders[15]. - The company has no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[146]. - There are no significant future plans for major investments or capital assets disclosed in the report[147]. - The company has not utilized any forward contracts or other methods to hedge foreign currency risks as of 2022, but will review and adjust its hedging and financing strategies based on currency fluctuations[142].
中智药业(03737) - 2022 - 年度财报